The state’s highest court has ordered Montpelier city officials to give fired planning director Gwendolyn Hallsmith a new post-termination grievance hearing.
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Former Montpelier planning and community development director Gwendolyn Hallsmith. Courtesy photo
The ruling was handed down Friday by the Vermont Supreme Court, upholding an earlier decision issued last year by the Washington Superior Court.
The lower court ruling found that Hallsmith had not been given an impartial adjudicator in her post-termination grievance hearing. The court determined she is entitled to a new hearing.
The hearing officer at Hallsmith’s post-termination hearing was Assistant City Manager Jessie Baker.
Hallsmith’s attorney has argued his client was denied her constitutional rights to due process.
According to court records, Hallsmith objected to the assistant city manager’s appointment as hearing officer, “pointing out that the assistant city manager reported directly to the city manager and had been personally involved in the events leading up to Hallsmith’s termination.”
The court also found that Hallsmith had been denied the right to cross-examine the issues related to her firing, and she was “undoubtedly entitled to a more complete post-termination process.”
The Supreme Court decision allows Hallsmith to have a hearing with a neutral adjudicator, cross-examination of evidence and disclosure of public records.
“The type of hearing I was given in December of 2013 has not been legal since the Magna Carta,” Hallsmith said. “The 800th anniversary of that groundbreaking document was celebrated just last week.”
The Supreme Court ruling can be seen here.
Hallsmith was the planning and community development director for the city for seven years. She was fired in November 2013 after city officials cited her for alleged unprofessional behavior and insubordination, among other claims.
In a statement issued after the Supreme Court decision was released Friday, William Fraser, Montpelier city manager, said the city was “disappointed” in the outcome and “looks forward to promptly conducting a full hearing on the merits.” City officials “remain confident that just cause exists for the termination action.”
Hallsmith claims she was fired because she advocated for a public banking system in Vermont and ran up against the interests of Mayor John Hollar who is a lobbyist for commercial banks.
Hollar disputes that claim.
“The reasons for Ms. Hallsmith’s termination are well documented and they had nothing to do with the public bank advocacy that she pursued on her own time,” Hollar said. “Her lawsuit against the city does not allege that it was due to my involvement or her work on public banking, so it seems odd that she continues to make that claim to the media.”
Hallsmith said she hopes “the truth about what happened will finally come to light, and I’ll be returned to my job.”
“It was a job I deeply cared about and worked hard at for seven years,” Hallsmith said. “I have been applying for other jobs in Vermont, but the damage that was done to my professional reputation is such that after making over 50 applications, it is impossible for me to even get a job interview, much less another job.”
Hallsmith said she has had to use money she inherited from her late mother’s house sale to pay legal bills and is living on a small retirement check.
“It’s great that the Supreme Court has affirmed for other municipal employees that they will never have to go to the expense of court to get a fair hearing before this kind of damage is done to them, but it doesn’t help me pay the tens of thousands in legal bills I have and will continue to have until this is over,” she said.
Hallsmith said she asked for a public apology when the lower court ruling came out last year.
“Going back to work is actually a lot less expensive for the city than other options at this point,” said Hallsmith. “Back pay, an apology … all that would go a long way toward undoing the damage.”
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